Committee forwards amended 20th and Larimer redevelopment plan that pauses housing, preserves grocery and public plaza

The Denver City Council Finance and Business Committee on Tuesday voted to forward to the full council an amended and restated Urban Redevelopment Plan from the Denver Urban Renewal Authority (DURA) for the 20th and Larimer area that pauses the residential component and refocuses the first phase on retail, adaptive reuse and a publicly accessible plaza.

DURA Executive Director Tracy Huggins presented the amended plan and said the revision responds to market conditions since the original plan was adopted in November 2022. "This is an amended and restated Urban Redevelopment Plan because in November 2022, City Council adopted the original 20 Seventh And Larimer Urban Redevelopment Plan," Huggins said, adding that the council previously found the area "blighted consistent with the statutory definition." She said the revised plan maintains the public benefits and many community commitments while changing the near-term project scope.

The amended project would convert previously planned residential parcels and below-grade parking into about 60,000 square feet of retail space (including a grocer), surface parking and 10,000 square feet of publicly accessible open space. Huggins said the DURA underwriting for tax-increment financing has been reduced from $19,600,000 to approximately $9,300,000 and that the revised amount still represents about 12% of the project's total budget. She told the committee the same 25-year tax-increment clock that began at the end of 2022 "continues to run," and that DURA will continue to honor existing agreements with other taxing entities, including payments to Denver Public Schools.

Tracy Huggins, Executive Director, Denver Urban Renewal Authority: "We felt it best to continue to honor the terms of that agreement with DPS and so we, Dura, will continue to pay over to DPS that $3,400,000 over the term of the tax increment area."

The developer, Edens, represented by Thomas Pikarsik, managing director, described the shift as an "interim phase" designed to remove blight and activate the neighborhood while residential construction is delayed by market conditions. "Our belief, this site should be mixed use and vertically integrated. But at this moment in time, the market conditions don't not allow that," Pikarsik said, adding that the developer still intends to deliver housing in a future phase and that the affordable housing commitment — 10% of units at no greater than 50% of area median income — remains part of the project's obligations when residential development returns.

Pikarsik also described community outreach and tenant goals for the retail program: about 49% of Edens' 40 tenants across the street are BIPOC-owned, and the developer said it has worked with neighborhood groups such as Curtis Park Neighbors and Rhino design committees. "What we heard from the community in those meetings were they wanted to remove that blight today, get activation, and the neighborhood service and retail was a huge focus," Pikarsik said.

Committee members asked about feasibility and community engagement. Councilmember Daryl Watson, who moved the committee motion, praised DURA's presentation and the developer's outreach. Councilmember Kevin Flynn, Councilmember Chris Hines and Councilmember Diana Romero Campbell participated in the discussion; Councilmember Heintz asked for more context on why residential financing was infeasible. Pikarsik said rising interest rates and construction costs, combined with local rent conditions, made achieving required returns for residential development unworkable during recent years. He said the developer had spent more than two years seeking a residential partner before revising the scope.

On parking and operations, the developer said surface parking will initially operate under a validation program for retail customers so spaces remain available and reasonable for tenants; the plan may later change if operational issues arise.

The committee approved a motion by Councilmember Daryl Watson, seconded by Councilmember Chris Hines, to forward the amended and restated Urban Redevelopment Plan to the full City Council for consideration, with a public hearing anticipated on Sept. 8 (as noted in the presentation). The committee did not take a roll-call vote in the meeting; the chair announced the motion and second and said the item will go to the full body.

Two consent items on the committee agenda were also noted as forwarded to the full council without discussion.

The DURA board approved the amended plan in July and Planning Board found it in continuing conformance with Denver's Comprehensive Plan 2040, Blueprint Denver and the Northeast Downtown Neighborhoods Plan. If the full council approves the amended plan after the public hearing, the project would proceed under the revised, retail-focused phase with DURA tax-increment assistance reduced to the amounts shown at committee.

Next steps: the item will return to full City Council for a public hearing and formal consideration; the developer and DURA can continue community outreach and project permitting in the interim.